WAYNE, PA — Trinseo PLC (NYSE: TSE) announced a series of strategic actions to streamline operations, enhance cash flow, and strengthen profitability amid persistent challenges in the European chemical industry. The plan includes plant closures in Italy, a potential shutdown in Germany, and the suspension of the company’s quarterly dividend.
The company will permanently close its methyl methacrylate (MMA) production at Rho, Italy, and its acetone cyanohydrin (ACH) operations in Porto Marghera, Italy. ACH serves as a key precursor to MMA. Trinseo will instead source MMA feedstock from third-party suppliers while continuing polymethyl methacrylate (PMMA) production and operating its new depolymerization pilot facility at Rho.
The Italian closures are expected to be completed by year-end and deliver an annual profitability improvement of about $20 million, along with a $10 million reduction in annual capital expenditures. Trinseo expects to record pre-tax charges of $80 million to $100 million related to the restructuring, including employee severance, asset impairments, and decommissioning costs. Associated cash payments are estimated at $40 million to $50 million, with most disbursements expected by 2028.
The company also announced it is in consultation with the Works Council of Trinseo Deutschland GmbH regarding a potential closure of its polystyrene (PS) production in Schkopau, Germany. If approved, PS production would be consolidated at Trinseo’s Tessenderlo, Belgium site, resulting in an additional $10 million in annualized profitability improvements.
“These plans are a by-product of the continuing challenges we and our peers in the European chemical industry have been facing for the past several years, including weak end market demand, high energy prices, and increased imports from Asia,” said Frank Bozich, President and CEO of Trinseo. “These decisions are never easy. Our primary focus has been on the safety of our colleagues and ensuring a respectful transition that aligns with our philosophy of doing the right thing.”
Separately, Trinseo’s board of directors voted to suspend its quarterly dividend of $0.01 per share, a move expected to save approximately $1.5 million annually.
Despite the restructuring, Trinseo stated it remains committed to its global customer base and will continue to invest in key markets and sustainability initiatives aimed at driving long-term growth.
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